The Property Investment Professionals of Australia is warning consumers about the risks of property investment spruikers as interest rates hit record lows.
PIPA Chairman Peter Koulizos said that a confluence of factors was likely to reignite spruiker activity in property markets in the months ahead, which had the potential to financially devastate the unwary.
Interest rates are rock bottom, lending is loosening up, plus first home buyers have been given a helping hand from the government deposit guarantee,she said.
While all of these factors are much needed good news for the property sector generally, they also create the ideal conditions for unscrupulous operators to potentially entrap novice buyers and investors.
Mr Koulizos said spruikers were increasingly cunning when it came to convincing buyers about investment opportunities, including enticing people more easily online.
However, there are a number of tell-tale signs that have never changed and are usually strong indicators that someone is about to get stung by a property spruiker.
PIPA’s six signs you’re about to be stung by a spruiker are:
1. Not disclosing kickbacks or commissions,
2. Using pressure tactics,
3. Offering discounts for signing contracts immediately,
4. Free seminars that come with hard sells,
5. Not following the same investment strategy,
6. Cut and run approach
PIPA has developed codes of ethics and conduct, which all of its members voluntarily agree to abide with, as well as professional standards of accreditation and education for the property investment industry, including a Qualified Property Investment Adviser accreditation course.
Port Stephens Examiner, 1 August 2019